TOKYO: Japanese share prices ended a notch higher on Monday in thin holiday trade as insurance stocks soared on news of a merger to form the coun
try's top non-life insurer. The market overcame early losses as dealers adjusted positions on the last full trading session of the volatile year.
The Tokyo Stock Exchange's benchmark Nikkei index rose just 7.65 points or 0.09 percent to close at 8.747.17. Gains were larger on the broader Topix index of all first section issues, which finished up 8.19 points or 0.97 percent at 854.77.
The Tokyo market opens for a half-day session on Tuesday before closing for new year holidays until January 5. "Market players have already finished adjusting their positions, and they wouldn't build any new positions until next year," Hiroyuki Fukunaga, chief executive of Investrust, told Dow Jones Newswires.
While the overall market remained largely within a narrow trading range, insurers soared on news that Mitsui Sumitomo Insurance Group and its two rivals were talking about a merger. Stocks in Mitsui Sumitomo, the second largest non-life insurance company, rose 220 yen or 8.26 percent to close at 2,845 yen.
The two other firms in the potential deal were also sharply up. Aioi Insurance jumped 78 yen or 19.21 percent to 484 yen, with Nissay Dowa General up 75 yen or 14.91 percent at 578 yen. But some stocks in other sectors slid on profit-taking.
Shares in Internet and telecom giant Softbank Corp. slipped 16 yen or 0.99 percent to 1,608 yen after sharp gains on Friday.
